Since November 2025, First Financial Bankshares has been in a holding pattern, posting a small return of 3.2% while floating around $32.24. The stock also fell short of the S&P 500’s 9.7% gain during that period.
Is now the time to buy First Financial Bankshares, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.
Why Is First Financial Bankshares Not Exciting?
We're sitting this one out for now. Here are three reasons why FFIN doesn't excite us and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.
Unfortunately, First Financial Bankshares’s 5.3% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the banking sector.
2. Net Interest Income Points to Soft Demand
Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.
First Financial Bankshares’s net interest income has grown at a 7.4% annualized rate over the last five years, worse than the broader banking industry.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
First Financial Bankshares’s weak 4.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Final Judgment
First Financial Bankshares isn’t a terrible business, but it isn’t one of our picks. With its shares lagging the market recently, the stock trades at 2.2× forward P/B (or $32.24 per share). This valuation tells us a lot of optimism is priced in - we think other companies feature superior fundamentals at the moment. Let us point you toward one of our top digital advertising picks.
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